This is the Final Public Hearing on the adoption of proposed amendments to Rule 69O-138.002, F.A.C., published on August 26, 2005, in Vol. 31, No. 34, of the FAW; a notice of change was published on December 9, 2005, in Vol. 31, No. 48, of the FAW. ...

 

FINANCIAL SERVICES COMMISSION

The Financial Services Commission announces a public hearing, to which all persons are invited.

DATE AND TIME: March 16, 2006, 9:00 a.m. during a regular meeting of the Financial Services Commission

PLACE: Cabinet Meeting Room, Lower Level, The Capitol, Tallahassee, Florida

GENERAL SUBJECT MATTER TO BE CONSIDERED: This is the Final Public Hearing on the adoption of proposed amendments to Rule 69O-138.002, F.A.C., published on August 26, 2005, in Vol. 31, No. 34, of the FAW; a notice of change was published on December 9, 2005, in Vol. 31, No. 48, of the FAW.

Pursuant to the provisions of the Americans with Disabilities Act, any person requiring special accommodations to participate in this program, please advise the contact person at least 5 calendar days before the program by contacting: Stephen Szypula, e-mail steve:[e-mail].

 

THE FULL TEXT OF THE PROPOSED RULE IS:

 

69O-138.002 Financial, Rate, and Market Conduct Examination Reimbursement Expenses.

(1) This rule establishes rates and procedures for reimbursement to the Office for examination and per diem expenses for examinations conducted by Office employees pursuant to the provisions of Sections 624.316 and 624.3161, Florida Statutes.

(2) Examination and per diem charges will be computed beginning at the start of the examination of time the examiner reports for duty at the insurer to be examined and the examiner’s active participation in the examination planning, and ending at the completion of the examination and or at the end of the examiner’s active participation in the examination, whichever is earlier. Where the examiner does not spend a full eight hour day in conducting the examination or planning, the insurer will only be charged for the time actually spent on planning or examination on a pro rata basis. If the examiner begins planning the examination more than a week prior to the actual on-site work, the Office will give written notice to the company being examined. No charges will be made for clerical or research work done by support staff to facilitate the examination or examiner’s report. Charges will also be assessed for actual travel days as certified by the Office.

(3) The daily examination fee for each financial examination employee or dual financial and market conduct examination employee shall be at the rates as published in the National Association of Insurance Commissioners Financial Condition Examiners Handbook Attachment B which is adopted in Rule 69O-138.001, F.A.C. The rates as published are applied as follows:

(a) The Insurance Company Examiner rate is applied to our Financial Examiner/Analyst I positions and any other positions not specifically identified.

(b) The Senior Insurance Examiner rate is applied to our Financial Examiner/Analyst II and Financial Specialist positions when such examiners are not in an examiner-in-charge role.

(c) The Insurance Examiner In-Charge rate is applied to any of our positions when such examiner is in the examiner-in-charge.

(d) The Administrative Examiner rate is applied to our Financial Examiner/Analyst Supervisor and any other positions that are in a supervisory capacity.

In addition, the daily examination fee shall be $232 $206.00 for each market conduct examination employee and $461 for each actuarial employee. The daily rates are applicable to for each day the employees are is participating on the examination site. In addition, each insurer shall pay to the Office an amount equal to 50% of the total examination fee for attendant administrative costs.

(4) The per diem and other travel charges shall be the maximum per diem charges contained in the most current version of the Office’s Administrative Policy and Procedure 7-4, (2-27-05) which is incorporated by reference and is available for inspection at the Tallahassee office of the Office, Attachment B, as revised 1/91, to section 8: Classification, Minimum Qualifications and Suggested Compensation for Zone Examiners, in the Financial Examiners Handbook issued by the National Association of Insurance Commissioners, which is hereby adopted and incorporated by reference, or the actual per diem and shown on the examiner’s expense voucher, whichever is higher. Other tTravel expenses will also be charged based on actual travel expenses incurred by the examiners.

(5) Each insurer will be billed on a monthly basis, based on the examiner’s expense vouchers as submitted to the Office.

Specific Authority 624.308(1) FS. Law Implemented 624.307(1), 624.316, 624.3161, 624.320 FS. History–New

3-30-92, Amended 12-27-92, Formerly 4-138.002, Amended ________.